The URL can be used to link to this page

Home My WebLink AboutFIN 2019-09-09 Item 2B - Budget - July 2019 Departmental Budget-to-ActualsCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Jeff Friend, Fiscal Manager CC: Mayor Ekberg DATE: September 4, 2019 SUBJECT: July 2019 Departmental Budget-to-Actuals Report Summary The purpose of the July 2019 General Fund Financial Report is to summarize for the City Council the general state of departmental expenditures and to highlight significant items. The following provides a high-level summary of the departmental financial performance. The July 2019 Report is based on financial data available as of September 4, 2019, for the period ending July 30, 2019. Additional details can be found within the attached financial report. Expenditures General Fund expenditures totaled $38.1M through July, which is about $116.1 K less than the allocated budget of $38.2M. The allocated budget is calculated to reflect year-to-date spending patterns of the previous year. Unbudgeted, Unplanned Events Four significant, unbudgeted events have occurred in 2019 that affect multiple departments. Code Violations During the first quarter, it was discovered that a local business's production plant violated numerous building codes. As a result, the City expects to receive a total of $79.7K for associated costs related to inspections, reviews, and consulting. INFORMATIONAL MEMO Page 2 Andover Park East Propane Leak In June, faulty piping in a large propane tank on Andover Park East was discovered which required the safe burn off of vapors remaining after the removal of the liquid gas. On August 16, the party responsible for the propane system was billed $21,707 to reimburse the city for costs associated with the event. When Budget Amendments go forward later in the year, this item will be included as a revenue -backed Budget Amendment. Department Labor Benefits Materials Total Police $ 1,532 $ 262 $ 1,666 $ 3,461 Fire 8,409 2,397 707 11,512 Street Maintenance 4,161 2,037 - 6,198 Water 436 100 536 Total $ 14,538 $ 4,796 $ 2,373 $ 21,707 East Marginal Way Power Pole Accident On April 5th, there was a large accident where numerous power poles fell over on East Marginal Way. Current estimates for this incident through September 4, 2019 are as follows: Department Overtime and Benefits Repairs and Maintenance Combined Street Maintenance and Operations $ 30,281.39 $ 214,890.16 $ 245,171.55 A claim totaling $245.2K has been initiated with the Washington Cities Insurance Authority (WCIA) for reimbursement of the current estimated expenditures. A check was received in June for $178.9K (75%) with the balance to be received later. When Budget Amendments go forward later in the year, this item will be included as a revenue -backed Budget Amendment. Snowstorms During the month of February, the City experienced two winter snowstorms. As of July 31st, unbudgeted costs related to the snow events are as follows: Department Overtime Supplies Combined Police $ - $ 143 $ 143 Fire 30,313 285 30,598 Public Works - 286 286 Park Maintenance - 452 452 Street Maintenance and Operations 19,463 30,555 50,018 Total $ 49,777 $ 31,721 $ 81,497 When Budget Amendments go forward later in the year, a Budget Amendment to account for Street Maintenance and Fire related costs may be included. INFORMATIONAL MEMO Page 3 Departmental Variances Eleven of fourteen General Fund departments were under their allocated budget through June 2019. Major variances are: • Community Development is $79.9K over budget through July. Professional Services expenditures ($129.2K over allocated budget) have been greater than anticipated in the budget. The budget had assumed development activity would slow in 2019; however, this has not been the case. Therefore, services directly related to development activity, such as peer review, that are typically outsourced, are now over budget. It should be noted that a large portion of Professional Services are revenue - backed. Repairs and Maintenance expenditures have not been significantly incurred ($30.8K under allocated budget) while Miscellaneous Expenditures ($19.4K under allocated budget) have also not been incurred at the level anticipated. Additionally, an unexpected structural code compliance review was done for a local business ($73.3K) in the first quarter. • Fire is $404K over budget. Salaries and benefits were $459.9K over budget resulting from three retirement payouts in June ($53K), unbudgeted pipeline positions ($211.1K) as well as overtime costs that were over budget through July ($195.8K). Services and supplies were under budget by about $55.9K partially offsetting the amount the department was over budget on salaries and benefits. As of the May 28th Finance Committee meeting, the Finance Committee began an ongoing analysis of options to address the Fire operating budget issues. The topic has been forwarded to the City Council as part of the Budget Amendment discussion on September 9tn • Street Maintenance and Operations was $335.8K over budget through July primarily due to overtime and supplies costs related to the snow events and the East Marginal Way power pole event. Purchases of supplies to replenish street maintenance inventory also contributed to the variance. This includes salt brine and sand ($37.2K), aluminum poles and luminaries ($25.4K), Malfunction Monitoring Units ($16K), pedestrian push buttons ($11.7K) and other miscellaneous items ($21.5K). Overtime and Benefits Supplies Snow $ 19,463 $ 30,555 Power Poles* 13,899 160,778 $ 33,362 $ 191,333 *Costs to be reimbursed by WCIA Total $ 50,018 174,677 $ 224,695 INFORMATIONAL MEMO Page 4 Year to Date Department Expenditures Compared to Allocated Budget (Through July 2019) City Council Mayor Administrative Services Finance Attorney Recreation Community Development Municipal Court Police Fire Technology & Innovation Svcs Public Works Park Maintenance Street Maintenance & Operations Dept 20 S218 254 yfl lYfflfl Ull,'ab1 V,11oyl'',11L'dli'i.. 51,342 S1,447 1.108 S 1.234 11111111,11,11,1179�r 1111,11l S319 S423 51.536 $1,635 1�d��l�"00)fl�fU�f�O%I�DI J�r�lYI�1,Oifl 51,902 S1.918 fl UGD VY ti15 N' Alu," ' k (11u1H`fa+,,'IR101Kr1111{ dMN'G 1111,111111111. S738 5765 ��I�LI�M>llfl�l�� 111�U111( 'ld 51,171 S1,180 52088 S2,008 JlfliX (f U' r'dIUV�(biiblk �7�f1(U�IU'Jl�h1�ltt�t 1,000 S 1,000 52,188 52,327 '�f��1V��I�11ulIIlVU�IRhYNf�IIHUI�1DIUiflffi�N1J1��9N� �Ikl;f7lU�l1/I�NII�JIDUIJI�Pf�lf�tl0�1� 52,647 S2,311 lUliU('i,111 1l 'Hill' 111111 !11� � �,°'>b;1bUM1��l��JI(U�NdNf1GYYVi�"r°�XVIU"ti�"JU��9AVk'"1rcflkl fU SO GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES $2,000 53,426 $3.225 S4,000 S6,000 eYTDActual eYTDBudget $8,000 S10,000 S12,000 Thousands Year -to -Date as of July31, 2019 SUMMARY OF EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2019 ANNUAL 2019 ALLOCATED 2017 2018 2019 ACTUAL OV MAUNDER) % CHANGE ALLOCATED BDGT % EXPENDED 2017/2018 2018/2019 01 City Council 432,111 254,486 199,867 218,995 217,793 (36,693) 50% 10% (1)% 03 Mayor 2,595,514 1,447,296 1,329,124 1,431,440 1,342,483 (104,813) 52% 8% (6)% 04 AdministrativeSenices 2,111,509 1,234,261 1,138,530 1,129,553 1,108,389 (125,872) 52% (1)% (2)% 05 Finance 2,671,195 1,634,965 1,487,680 1,587,723 1,535,971 (98,994) 58% 7% (3)% 06 Attorney 710,730 422,644 220,974 593,401 318,666 (103,978) 45% 169% (46)% 07 Recreation 3,294,138 1,917,677 1,825,495 1,813,196 1,901,767 (15,909) 58% (1)% 5% 08 Community Development 3,511,558 2,007,676 1,877,884 1,932,419 2,087,584 79,908 59% 3% 8% 09 Municipal Court 1,298,228 764,587 704,139 758,419 737,952 (26,635) 57% 8% (3) % 10 Police 19,427,613 11,361,609 10,326,332 10,254,144 10,886,466 (475,143) 56% (1)% 6% 11 Fire 12,473,387 7,126,761 6,851,220 6,816,831 7,530,748 403,987 60% (1)% 10% 12 Technology& Innovation Svcs 2,043,934 1,180,487 873,914 1,207,258 1,171,063 (9,423) 57% 38% (3)% 13 Public Works 3,948,613 2,327,399 2,058,411 2,117,860 2,188,084 (139,315) 55% 3% 3% 15 Park Maintenance 1,630,586 1,000,409 855,473 871,724 1,000,353 (56) 61% 2% 15% 16 Street Maintenance & Operations 3,354,733 2,311,063 2,033,303 2,095,406 2,646,886 335,823 79% 3% 26% Subtotal 59,503,849 34,991,318 31,782,344 32,828,369 34,674,206 (317,113) 58% 3% 6% 20 Dept20 6,362,029 3,224,543 1,518,002 3,932,726 3,425,593 201,050 54% 159% (13)% Total Expenditures 65,865,878 38,215,861 33,300,346 36,761,095 38,099,799 (116,063) 58% 10% 4% Percent o year completed 58% INFORMATIONAL MEMO Page 5 GENERAL FUND CITY OFTUKWILA GENERAL FUND EXPENDITURES Year -to -Date as of July 31, 2019 SUMMARY OF SALARIES AND BENEFITS BUDGET ACTUAL COMPARISON OF RESULTS 2019 ANNUAL 2019 ALLOCATED 2017 2018 2019 ACTUAL OVER(UNDER) % CHANGE ALLOCATED BOLT % EXPENDED 2017/2018 2018/2019 11 Salaries 28,891,480 16,853,363 15,604,254 15,797,512 16,501,687 (351,677) 57% 1% 4% 12 Extra Labor 762,833 440,588 384,589 402,517 479,403 38,815 63% 5% 19 % 13 Overtime 1,350,099 767,548 952,697 822,352 1,067,992 300,443 79% (14)% 30% 15 Holiday Pay 504,517 94,113 77,807 94,903 76,376 (17,737) 15% 22 % (20) % 21 FICA 2,107,153 1,229,173 1,027,724 1,045,196 1,082,335 (146,838) 51% 2% 4% 22 Pension-LEOFF 2 922,206 537,954 472,108 481,906 513,617 (24,336) 56% 2% 7 % 23 Pension-PERS/PSERS 1,751,656 1,021,799 849,675 981,801 1,026,153 4,354 59% 16% 5% 24 Industrial Insurance 861,417 502,493 355,971 351,629 477,242 (25,251) 55% (1)% 36% 25 Medical & Dental 5,998,564 3,499,162 3,272,682 3,207,246 3,349,666 (149,496) 56% (2) % 4% 26 Unemployment - - (663) 18,354 10,400 10,400 - (2869)% (43)% 28 Uniform/Clothing 8,525 4,973 1,403 2,553 1,783 (3,190) 21% 82% (30)% Total Salaries and Benefits 43,158,450 24,951,166 22,998,246 23,205,970 24,586,654 (364,512) 57% 1% 6 % SUMMARY OF SUPPLIES, SERVICES, AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2019 ANNUAL 2019 ALLOCATED 2017 2018 2019 ACTUAL OVER/(UNDER) % CHANGE ALLOCATED BDGT EXPENDED 2017/2018 2018/2019 0 Transfers 6,362,029 3,224,543 1,516,002 3,932,726 3,425,593 201,050 54% 159% (13)% 31 Supplies 1,072,087 566,218 666,465 551,037 932,519 366,301 87% (17)% 69% 34 Items Purchased for resale 22,000 16,587 15,307 16,954 18,029 1,442 82% 11 % 6 % 35 Small Tools 163,569 70,034 63,123 50,521 63,941 (6,092) 39% (20)% 27% 41 Professional SeRices 6,404,856 3,749,284 3,121,475 3,665,033 3,480,017 (269,268) 54% 17% (5)% 42 Communication 434,600 247,261 195,156 239,075 215,105 (32,156) 49% 23% (10)% 43 Travel 159,630 87,608 119,783 89,527 124,216 36,608 78% (25) % 39% 44 Advertising 47,550 25,587 11,509 21,989 11,651 (13,936) 25% 91% (47)% 45 Rentals and Leases 2,901,035 1,659,745 1,254,991 1,373,506 1,776,771 117,026 61% 9% 29% 46 Insurance 1,005,775 1,005,775 887,617 974,066 889,957 (115,818) 88% 10% (9)% 47 Public Utilities 1,999,424 1,587,393 1,466,542 1,523,466 1,535,863 (51,530) 77% 4% 1% 48 Repairs and Maintenance 623,150 310,897 284,741 246,640 394,623 83,726 63% (13)% 60% 49 Miscellaneous 1,271,723 695,652 643,952 821,780 599,632 (96,020) 47% 28% (27)% 64 Machinery&Equipment 240,000 18,112 53,435 48,806 45,228 27,116 19% (9)% (7)% Total Supplies, Services, and Capital 22,707,428 13,264,695 10,302,099 13,555,126 13,513,145 248,450 60 % 32% (0)% Total Expenditures 65,865,878 38,215,861 33,300,346 36,761,095 38,099,799 (116,062) 58% 10% 4% Percent of year completed 58%